Blog Layout

Achieving the Highest ROI for your Rental Property as a Sacramento Landlord

Achieving a great return on investment, or ROI, is the goal of every rental property investor. We’ve invited Bob, a real estate agent with Keller Williams, to talk to us about ROI on today’s blog. We will often have people buying rental property ask us about whether a particular property will provide a good return. We’ve asked Bob to shed some light on what that means and how to increase your own ROI.


Understanding What Factors Impact ROI 


Whether you’re buying an investment property or selling one you currently own, you’ll want to know what kind of value it holds on the market. Rental projections are important numbers, and so are numbers like what the property could rent for and how long it may remain vacant before you earn any money on it. Those are two key factors. 


Other areas to look at when figuring out the ROI would be the costs to remodel or clean up the home before it’s ready for the rental market. You would have all of that answered after the property inspection or the home inspection was performed. Other items on the list that may impact your ROI include property tax including assessment taxes, management and maintenance fees, and insurance expenses. Once all that is put together on a spreadsheet, you should review it and maybe take it to an accountant or a CPA. The amount of ROI you can expect often depends on your financial situation at the time. 


Working Together with Real Estate and Management Partners


At Sacramento Delta Property Management, we do not sell real estate. At Keller Williams, Bob helps people buy and sell homes. When you’re planning to buy a rental property and you need to know what you’ll have to spend and what you can expect in terms of rent and ROI, it’s important to talk to both of us. We each do different things every day, and you’ll need a lot of expertise in order to make the right decision and have a successful investment experience. 


Keeping the buying and selling part of your transaction separate from the property management portion of your investment will help you gain as much expertise and as many resources as possible during this process. I love referring clients to Realtors when they want to buy something, because they really are experts at what they do. Bob knows how to buy and sell solid real estate property and he knows how to deal with non-owner occupied properties. He definitely gives us a lot of support on the investment side, which is great. 


Property management that’s professional and experienced allows you to earn more on your rental property. We keep your tenants happy and paying rent. The last thing we want are hostile tenants. We want to get a good understanding of how they feel. Tenants are just as much a part of earning more ROI as your rental value and your vacancy rate. 


We’d love to tell you more about how to earn a better return on your Sacramento investment property. Please contact us at Sacramento Delta Property Management.

What a Professional Sacramento Property Manager Can Do That a DIY Landlord Cannot - Article Banner
By Sandy Highland 08 Feb, 2024
Here are some of the things a professional Sacramento property manager can do that a DIY landlord simply cannot.
Lease Agreement Terms Sacramento Landlords Should Consider Adding - Article Banner
By Sandy Highland 25 Jan, 2024
What should you consider adding, even if it’s something that’s not in a standard lease? Here are a few tips.
Terms Every Lease Agreement in California Should Include - Article Banner
By Sandy Highland 11 Jan, 2024
Here are a few of the most important terms that every lease agreement in California should include.
How to Minimize High Tenant Turnover in Your Sacramento Rental Property - Article Banner
By Sandy Highland 28 Dec, 2023
Here are some of the ways we minimize turnover as Sacramento property managers.
Pros and Cons of Renting Your Sacramento Home to Relatives - Article Banner
14 Dec, 2023
Is it okay to rent to a family member or relative? Here’s a short answer: maybe. But, probably not. Here are a few things to think about.
Preparing Sacramento Property Owners for 'Normal Wear and Tear' at Resident Move-Out
By Sandy Highland 30 Nov, 2023
We’re talking about a topic we have covered a couple of times: property wear and tear versus property damage and how it impacts the security deposit and move-out.
How to Be a Good Landlord in Sacramento - Article Banner
By Alejandro White 16 Nov, 2023
To be a good landlord, you have to provide high-quality housing in a sustainable manner. There are multiple steps required to get there.
Do You Know the Difference Between Federal & California Fair Housing Laws? - Article Banner
By Sandy Highland 26 Oct, 2023
Fair housing laws were enacted at the federal level to prevent discrimination in the sale, rental, and financing of properties in the housing industry.
Maintenance Processes for Successful Sacramento Property Management - Article Banner
By Sandy Highland 12 Oct, 2023
Let’s take a look at our maintenance process so you know what should be included when routine repairs are needed at your property.
Factors to Consider When Determining A Rental Rate - Article Banner
By Sandy Highland 10 Mar, 2023
Today, we’re talking about our process for coming up with the best rental amount for your property.
More Posts
Share by: